While a federal court in New Orleans is expected to rule any day on a lower court’s decision to overturn Obamacare, an analysis released on Monday from the Center on Budget and Policy Priorities has found that the rich will receive billions in tax cuts if the ACA is overturned.
Over 1,400 households with incomes over $53 million would receive a combined $3.8 billion in tax cuts if the law is overturned. Most of the tax cuts would affect millionaires, who would receive tax cuts of about $46,000 each, according to the report. Pharmaceutical companies would also benefit, as the ACA collects an annual fee from companies that sell branded prescription drugs.
If the court strikes down Obamacare, about 25 million people would lose their insurance. Essentially it would mean a transfer of billions of dollars of benefits from the middle and lower income families to the wealthy if the law is struck down in its entirety.
The case known as Texas vs. the United States, brought by Texas and other republican controlled states, alleges that the ACA’s individual mandate is unlawful after Congress eliminated the penalty for not having insurance in 2017.
Source at CNBC.